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Since we began the course emphasizing that costs of a manufacturing company product include only the materials, labor and overhead used in or occurring in
Since we began the course emphasizing that costs of a manufacturing company product include only the materials, labor and overhead used in or occurring in the factory and costs of a merchandising company product include the only purchase of the product and expenses surrounding the procurement of it (like freight-in and insurance), why in this chapter do we learn to allocate non-manufacturing and non-procurement costs to products, including the intangible products of service companies?
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